Canada launches new livestock insurance program
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CAMROSE, Alberta – Canada is launching a new price insurance program to help livestock producers in the country's western provinces manage price risks.
The Western Livestock Price Insurance Program (WLPIP) allows cattle and hog producers to buy insurance on an insured price selected by the producer from available coverage levels. Producers will fully fund the premiums.
“This program gives more producers access to a solid tool to manage price and basis risk, one of the more unpredictable aspects of managing an operation. Market-based risk management is key to better managing volatility,” said Martin Unrau, president, Canadian Cattlemen’s Association (CCA).
The product was offered in 2009 to livestock producers in Alberta. WLPIP expands the Alberta program to a regional model. The program will open first to producers in British Columbia and Saskatchewan. Alberta’s Agriculture Financial Services Corp. will be the central administrative body for WLPIP, while in Saskatchewan the Saskatchewan Crop Insurance Corp. will be the lead customer service agent for the program.
Federal and provincial governments will cover administration and delivery costs for the pilot WLPIP through Growing Forward 2’s AgriRisk Initiatives - Administrative Capacity Building. The federal government will also provide deficit financing for the pilot.